Mar 14, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Stock Trading & Taxes
Whether we sell covered calls or cash-secured puts strong consideration should be given to trading in sheltered accounts whenever possible. Most, if not all, of our trades will be short-term in nature (less than one year) and therefore will be taxed at the ordinary...
Mar 7, 2015 | Investment Basics, Option Trading Basics, Stock Option Strategies
Stocks eligible for our covered call writing and put-selling portfolios are screened in a 3-pronged approach: fundamental analysis, technical analysis and “common sense principles” like avoiding earnings reports. One of the categories under the common...
Feb 28, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Understanding the Greeks, or factors that impact the value of our covered call premiums, is essential to mastering options trading basics and becoming an elite covered call writer. One of the Greeks (although not truly a Greek letter) is Vega, the amount an option...
Feb 21, 2015 | Option Trading Basics, Options Calculations, Stock Option Strategies, Technical Analysis
When using covered call writing and put-selling strategies it is important to set goals for initial returns in order to select the most appropriate underlying security and option. My goal for initial returns is 2% – 4% per month and a bit higher in a bull market...
Feb 14, 2015 | Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies
Covered call writing and put-selling results are enhanced by selecting the best underlying securities and most appropriate options. Stock selection involves screening via fundamental and technical analysis as well as common sense screens (like avoiding earnings...
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